Market commentaries
AUCKLAND: New Zealand shares fell the most across Asia as Z Energy led the market lower for another day amid rising oil prices, growing competition and the threat of increased regulation.
The S&P/NZX 50 index dropped 108.33 points, or 1.2%, to 8802.26. Within the index 39 stocks fell, nine gained and two were unchanged. Turnover was $115.6 million.
The local market posted the biggest decline across Asia Pacific. Australia’ s S&P/NZX 200 index was down 0.2% in afternoon trading, Hong Kong’s Hang Seng fell 0.3% and Japan’s Topix was down 1.1%.
Z Energy led the local market lower, falling 3.9% to $6.10, the lowest close since February 2016.
The share price has dropped 11% this week, after the transport fuels company reported lower petrol volumes as oil prices rise. At the same time, it is facing increased competition from lowcost operators such as Waitomo and the Government is threatening regulatory intervention.
Matt Goodson, managing director at Salt Funds Management, said the share price was under pressure from the operational data showing lower fuel volumes and what impact a Commerce Commission study into the fuel market would have on margins. Those regulatory powers are yet to be passed into law.
‘‘It’s a little convergence of difficulties for Z,’’ he said.
New Zealand Refining fell 3.2% to $2.43. Ryman Healthcare fell 3.9% to $12 on lighter than usual volumes. Metlifecare was down 2.5% at $5.85 and Summerset Group declined 1.3% to $6.85.
Mr Goodson said housing data for September showed a slow market in what was typically a busy month, and that might be weighing on the retirement village operators.
Spark New Zealand reported the busiest activity with 2.6 million shares traded, with the stock rising 0.5$% to $3.90. Contact Energy fell 0.4% to $5.61 on volume of 2.5 million and Meridian Energy was down 0.8% to $3.11, on 2.2 million shares traded.
Auckland International Airport fell 1.3% to $6.92, on a volume of 1.9 million. Kiwi Property Group was down 0.4% at $1.35, on 1.8 million shares, and Air New Zealand fell 1.3% to $2.74, on one million shares.
Restaurant Brands New Zealand slipped 2% to $8.50, giving up some of Thursday’s 14% gain. The fastfood operator has received an indicative takeover offer of $9.45 for threequarters of the company. First NZ Capital raised its rating on the stock to ‘‘neutral’’ and said the offer price was compelling.
Fletcher Building fell 2.1% to $6.10 and Sky Network Television rose 1.3% to $2.28. A2 Milk Co declined 1% to $10.31.
Ebos Group slipped 0.5% to $21.70 after saying it would pay $A50 million to buy out minority shareholders in Terry White Group.
Outside the benchmark index, Tilt Renewables slipped 0.9% to $2.28 after raising earnings guidance while cutting the value of its Australian assets. The company is under a takeover offer from Infratil for $2.30 a share. Infratil fell 0.7% to $3.435.
Pyne Gould Corp rose 6.1% to 35c. After the close of trading, Pyne Gould issued a notice of a special meeting to vote on a plan to leave the NZX for Guernsey listing. The meeting will be held in Queenstown, on October 31.
A The Australian share market closed flat, as banking stocks clawed back from a weak start, after heavy overnight losses on Wall Street.
The benchmark S&P/ASX200 index was down 2.9 points, or 0.05%, at 5939.5 points, while the broader All Ordinaries lost 0.12%.
China’s economy grew 6.5% in the third quarter, a tick short of forecasts and the slowest pace since the global financial crisis.
But Pepperstone head of research Chris Weston said positive commentary from various highranking officials in Beijing helped kickstart the local market.
‘‘The pace of growth [in China] is still fairly good,’’ he said.
‘‘Money creation and supply has ticked up a little bit and what we need is a circuit breaker and it does seem we’re getting more supportive rhetoric that they are going to defend asset prices.’’
The financial sector closed higher for the fourth straight session. National Australia Bank was the only of the major lenders to finish lower, after its chief executive Andrew Thorburn appeared at the House economics committee.
It was down 0.3% to $25.67, while Commonwealth Bank had the strongest gains of the big four, up 1% to $67.92.
The heavyweight materials sector — which has proved a consistent drag for almost two weeks — was lower following an overnight dip for several industrial metals. Sector giants BHP and Rio Tinto were down 0.3% and 1.7% respectively, and Fortescue Metals and South32 were both more than 2% lower.
Gold stocks, however, gained after a jump in the safehaven precious metal. St Barbara, Northern Star, Regis Resources and Saracen Mineral all closed between 4.3% and 5.3% higher.
Buynow paylater fintech Afterpay continued its choppy week, reacting to concerns of an inquiry and negative global sentiment.
It was down 3.5% to $12.50, dragging the infotech sector down 1.1%.
The Australian dollar was cautious after Beijing offset a mixed bag of Chinese data by pledging more support for the economy, though risk sentiment remained alltoo fragile after a rough week.
The Aussie was buying US71.09c down from US71.24c on Thursday.